Michigan spends $37.5M to lower SNAP payment error rate

Key Points:

• Michigan is investing $37.5 million to reduce its Supplemental Nutrition Assistance Program (SNAP) payment error rate, which stands at 9.89% for fiscal year 2025 and risks a $300 million federal fine by 2028.
• The federal government aims for states to achieve a 6% error rate to avoid increased financial penalties, but Michigan's rate remains high partly due to unaddressed out-of-state SNAP fraud.
• Michigan's spending plan includes $5 million for an ad campaign, $12 million for IT improvements, $10 million for staff and overtime, $6 million for consulting with McKinsey, and $4.5 million for prior reinvestment projects.
• Despite federal efforts to collaborate with states like Ohio to combat SNAP fraud, Michigan has declined to share data, limiting the ability to address benefit theft occurring in other states.
• Governor Gretchen Whitmer announced the departure of MDHHS Director Elizabeth Hertel, with Amy Epkey named as her replacement, a move welcomed by House Oversight Chairman Jason Woolford amid concerns over accountability and program mismanagement.